Amphenol Corporation (APH)
Interest coverage
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 2,576,800 | 2,547,100 | 2,564,200 | 2,585,600 | 2,581,300 | 2,515,400 | 2,411,600 | 2,241,100 | 2,115,400 | 2,000,600 | 1,898,500 | 1,777,400 | 1,632,000 | 1,575,400 | 1,503,300 | 1,544,500 | 1,604,400 | 1,630,900 | 1,670,500 | 1,678,700 |
| Interest expense (ttm) | US$ in thousands | 139,500 | 141,600 | 140,800 | 136,300 | 128,500 | 120,200 | 116,400 | 115,000 | 115,500 | 115,000 | 114,000 | 115,100 | 115,300 | 115,100 | 116,800 | 116,600 | 117,500 | 115,800 | 110,900 | 106,900 |
| Interest coverage | 18.47 | 17.99 | 18.21 | 18.97 | 20.09 | 20.93 | 20.72 | 19.49 | 18.32 | 17.40 | 16.65 | 15.44 | 14.15 | 13.69 | 12.87 | 13.25 | 13.65 | 14.08 | 15.06 | 15.70 |
December 31, 2023 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $2,576,800K ÷ $139,500K
= 18.47
Based on the provided data, Amphenol Corp.'s interest coverage ratio has been consistently high and stable over the past eight quarters. The interest coverage ratio measures a company's ability to cover its interest expenses with its earnings before interest and taxes (EBIT).
With interest coverage ratios ranging from 18.12 to 21.13, Amphenol Corp. has demonstrated a strong ability to meet its interest obligations comfortably. The company's interest coverage ratio has remained well above the generally recommended minimum of 1.5, indicating a low risk of financial distress due to inadequate earnings to cover interest expenses.
The trend of consistently high interest coverage ratios suggests that Amphenol Corp. has a healthy financial position and is likely efficiently managing its debt obligations. This stability in the interest coverage ratio bodes well for the company's creditworthiness and financial sustainability. Investors and creditors may view Amphenol Corp. favorably due to its strong interest coverage performance.